Shreyas Bhave .

Can anyone provide advice on how to grow fast in amanufacturing setup when you are having lot of orders and expertise to execute them but your capacity utilization is low because of less free working capital (due to profit erosion from past, secuirity deposit amounts stuck in long term due to old contractual obligations) and not wishing to dilute equity as it has already been diluted to the ranges of 30% in past for building assets.
Is it like a catch 22 sutuation and how can one escape from this?

Originally Posted Here

Pranav Agarwal

Hi shreyas
There are several working capital facilities that you can apply for. If not banking then private lending is also possible (but very expensive)
Problem is what proves that you won’t have the same issues and lock capital again in these fresh orders

Arokya Inian

Reached the point of Sustain Vs Sell

Shreyas Bhave

yes, but is there no avenue of growth in such a situation?

Arokya Inian

Depends on how long you have been in that situation, sometimes it is better to move on

Sanjay Pradhan

Look for Job work / outsource option with those having ideal capacity ..considering credit terms matching with those of your customer .

Shreyas Bhave

this will help if working capital was less to serve Payroll. But the working capital is falling short to buy Raw material. And already working on credit of 90-120 days with almost all suppliers.

also cannot be fully outsourced at it is very high skill based work and requires huge machineries. Turnkey Outsourcing is not an option

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